Not a day goes by without me seeing yet another day trading system with claims that it can make me huge gains. I normally for fun ask for the real track record and of course don’t receive one.

Fact is day trading systems will lose you money as by their very nature they can’t work here’s why.

Firstly

If you are ever considering buying a day trading system ask for the real time track record over the long term ( this means 2 years + ) don’t accept a hypothetical track record!

Let’s see we know the prices in hindsight can we make a profit?

Of course we can!

Anyone can win with a hypothetical track record, there worthless, so ask for the real time record and you won’t get one here’s why.

1. Short term moves are random

The currency markets trade trillions of dollars per day and short term moves within any daily period are random.

You could flip a coin or use a day trading system your odds of winning are the same.

2. Volatility

Is random in short time frames and prices can simply go anywhere.

As most day trading systems bang on about keeping losses small, stops are normally taken out creating a loss.

Furthermore, your chances of losing are greater as the odds of being taken out are high.

3. Day trading systems never run profits

A day trading system keep your losses small (albeit you have massive odds of being stopped out) but they never seem to do the other essential of making money in FOREX and that’s run profits.

Day trading systems normally have short term profit targets and are grateful for any profit they can get.

So what do you have?

Lots of small losses and no real profits to make up for them.

This means you get wiped out and normally wiped out quickly.

The Myth and The Reality

The myth is that day trading systems make money, the reality is day trading is one of the best ways to not only lose your equity, but lose it quickly.

People day trade because they are greedy or simply fools.

When I read a lot of the sales blurb of day trading systems its obvious these vendors have never traded, they make their money selling courses.

They make money from book sales not from trading, so they win you lose.

Saw one promising me 90% successful trades for a few hundred dollars.

Well if I had one of those, would be making millions and certainly wouldn’t sell it I would be to busy enjoying my riches.

Finally

If you want to trade currency markets you can make money, but be realistic and sensible and make sure that you don’t fall for the hype of day trading systems.

If you do get ready to lose your equity and lose it quickly.

Day trading has become popular in the last decade. There are many people now who make a successful living by trading different markets. Day trading or swing trading which is better?

Day trading is often depicted in a glamorous manner in the trading literature. Do you know this that day trading is stressful and day traders are often referred to as the kings of stress. Now I am not saying that day trading is something you should avoid. There are people who are masters of day trading and this trading style suits their personality.

However, in my opinion swing trading is a much better option. In day trading you have to sit in front of your computer terminal watching the different charts and waiting for the trading signals. You can do that for a few days but after that fatigue and stress will overtake you especially if you have been making losing trades.

In day trading you open and close a trade within the same day and don’t carry forward your trade overnight to the next morning. As compared to that in swing trading you can open a trade anytime of the day when the moment is right and can keep it open for days as long as your profit target is not met.

In swing trading the profit targets are also much higher as well as your stop loss is also more wide so you have more space. Swing trading depends on riding the trend at the right moment and continue riding it as long as it lasts. Day traders are looking for short term trends that may not last more than 24 hours but sometimes as a day trader if at the end of the day you have a profitable position and you feel that you should keep your trade open for a few more days you decide to carry it forward to the next few days.

So sometimes you start as a day trader but end up as a swing trader. In swing trading you don’t need to monitor your trade all day. After opening your trade and putting your stop loss and take profit orders you are free as the market will take its own course after that. You only need to take a look at your trade for 10-15 minutes a day anytime of the day that suits you. As long as your technical analysis was correct, your trade will work. So you have much more freedom in swing trading specially for those who do a regular job and trade as well.

Author: Ahmad A Hassam
Article Source: EzineArticles.com
Provided by: Duty tariff